Asia-Pacific markets fell on Thursday as investors grappled with volatile oil prices and escalating tensions in the Middle East, even after the US and its allies announced an unprecedented emergency release of crude oil reserves to calm energy markets.
The International Energy Agency (IEA) intends to release 400 million barrels of oil after supply disruptions due to the war with Iran, the largest such action in the organization’s history. The IEA has not set a time frame for when the shares will come to market.
The US will release 172 million barrels of oil from the Strategic Petroleum Reserve to reduce energy costs, Energy Secretary Chris Wright said Wednesday evening in the US.
The announcement comes after President Donald Trump said earlier in the day that he would use the Strategic Petroleum Reserve to curb energy prices, SEEbiz reports.
West Texas Intermediate crude jumped 8.8% to $95 a barrel, while global benchmark Brent traded around 8.88% higher at $100, even after the International Energy Agency announced its largest emergency release of crude oil reserves in history.
Australia’s S&P/ASX 200 fell 1.61%.
Japan’s Nikkei 225 fell 1.54%, while the Topix lost 1.61%. South Korea’s Kospi fell by 1.3%.
Hong Kong’s Hang Seng index fell 1.12%, while the CSI 300 fell 0.6%.
Overnight in the US, the Dow Jones Industrial Average fell as investors continued to monitor developments in the US-Iran war and oil prices.
